Hornbeck Offshore (HOS) 8/7/12
$260m (+40m) 144a convertible sr note from BAR pricing Tues night after close. 7 yr bullet 1.5-2% up 32.5-37.5, all ptcns, UOP, pay for note hedge, retire 1.625% converts and GCP. HOS is a leading provider of marine transport to the offshore oil and gas industry, mainly in the GOM with some limited int’l exposure. They also transport petro products via tugs and barges in NE, USA and PR. The 5.875% str8s trade 435 ish, we’ll use L+500 for converts, volatile name but 7 yrs, we’ll use 37. GC brw That’s 106.72/104.33/101.99. No small deal excuse here, looks cheap. Some o/r accts might see floor premium & punchy delta & stay with olds, but new one should be shipped in, BUY